Companies Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 268 of Companies Act: Corporate Governance & Statutory Compliance
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
No appeal shall lie in any court or other authority and no civil court shall have any jurisdiction in respect of any matter in respect of which the Tribunal or the Appellate Tribunal is empowered by or under this Chapter and no injunction shall be granted by any court or other authority in respect of any action taken or proposed to be taken in pursuance of any power conferred by or under this Chapter.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
Section 268 historically enacted an absolute bar of jurisdiction precluding civil courts from entertaining suits or granting injunctions over rehabilitation proceedings; omitted by the Insolvency and Bankruptcy Code, 2016, this jurisdictional bar is now preserved in Section 63 and Section 231 of the IBC and Section 430 of the Companies Act.
Complete Exclusion of Civil Court Jurisdiction: Precluded civil courts from entertaining any suit or proceeding in respect of any matter which the Tribunal was empowered to determine under Chapter XIX.
Statutory Injunction Prohibition: Barred civil courts from issuing temporary or permanent injunctions that could stay or impede revival actions taken under the authority of the Tribunal.
Succession by Section 63 IBC and Section 430 Companies Act: Omitted by the IBC, with the jurisdictional bar now reinforced by Section 63 and Section 231 of the IBC, alongside Section 430 of the Companies Act, 2013.
Key Landmark Precedents:
Shashi Prakash Khemka v. NEPC Micon, (2019) 18 SCC 569: The Supreme Court held that Section 430 of the Companies Act bars civil court jurisdiction over any matter falling within the purview of the NCLT, establishing total forum exclusivity.
Gujarat Urja Vikas Nigam Ltd. v. Amit Gupta, (2021) 7 SCC 209: Confirmed that Section 63 of the IBC deprives civil courts of all jurisdiction over corporate insolvency and restructuring proceedings, leaving the NCLT as the exclusive forum.
Embassy Property Developments Pvt. Ltd. v. State of Karnataka, (2020) 13 SCC 308: Delineated the scope of NCLT jurisdiction, clarifying that while contractual and corporate insolvency disputes belong exclusively to NCLT, broad public law disputes remain with High Courts under Article 226.
Courtroom Practice & Strategic Litigation Guidance:
If a recalcitrant director or creditor institutes a civil suit seeking to stall restructuring or insolvency proceedings, file an immediate application under Order VII Rule 11 of the CPC invoking Section 63 of the IBC and Section 430 of the Companies Act to secure dismissal of the plaint at the threshold.
Legal Commentary & Landmark Judgments: Section 268
Section 268 historically enacted an absolute bar of jurisdiction precluding civil courts from entertaining suits or granting injunctions over rehabilitation proceedings; omitted by the Insolvency and Bankruptcy Code, 2016, this jurisdictional bar is now preserved in Section 63 and Section 231 of the IBC and Section 430 of the Companies Act.
If a recalcitrant director or creditor institutes a civil suit seeking to stall restructuring or insolvency proceedings, file an immediate application under Order VII Rule 11 of the CPC invoking Section 63 of the IBC and Section 430 of the Companies Act to secure dismissal of the plaint at the threshold.